tools for organisational analysis

1. Tools for organisational analysis
Presented by
Shafeek.s

2. Internal analysis
– VRIO(Valuable, Rare, Imitable, organised for
usage) frame work.
– Value chain analysis.
– Quantitative analysis.
– Qualitative analysis.
 Comparative analysis.
– Historical analysis.
– Industry analysis.
– Bench marking.

3. Comprehensive analysis.
– Key factor rating.
– Business systems.
– Balanced score card.

4. Internal analysis
VRIO(Valuable, Rare, Imitable, organised for
usage) frame work.
VRIO frame work is the tool used to
analyse firm’s internal recourses and capabilities
to find out if they can be a source of sustained
competitive advantage.

5. Value chain analysis
• A value chain is a set of interlinked value
creating activities performed by an
organisation.
• Helps to determine which activities are the
most valuable.

6. Quantitative analysis
Financial analysis.
Non-financial services.
Qualitative analysis
Supplement the quantitative analysis.
Helps to express the tenor of corporate
culture, ability to absorb and assimilate
knowledge or the level of moral among
employees.

7. Comparative analysis
Historical analysis
one way to compare performance and
identify strengths and weakness is to start
with the historical analysis of one’s own
organization over a period of time. Continuous
improvement can be measured through
historical analysis.

8. Industry analysis
the industry in which the business belongs has
to be analyzed. Such type of analysis is to be
done because to know the position of industry
in industry life cycle.

9. Bench marking
A bench mark is a reference point for taking
measured against. The purpose of bench
marking is to find out best practices and
perform within and outside the industry to
which the organization belongs.

10. Comprehensive analysis
Key factor rating
These system, are based on rating, depending
on a number of key factors, each of which is
analyzed on the basis of a series of thoughtful
penetrating questions. The sequence of
questions roughly corresponds with the
factors which are limited.

11. Business intelligence system
BI is a term coined by Horward J Dresner of the
Gartner Group in 1989, become popular in 1990.
BI is defined by Gartner Group as ‘a broad
category of applications and technologies for
gathering, storing, analyzing, and providing
access to data to help enterprise users make
better decision’. BI can help an organization in
strategic and operational decision making. A
Gartner survey ranked the strategic use of BI in
the following order:

12.  Corporate performance management.
 Optimizing customer relations, monitoring
business activity and traditional decision
support.
 Packaged stand-alone BI applications for
specific operations or strategies.
 Management reporting of business
intelligence.

13. Balanced score card
Balanced score card is relevant for objective
setting in organizations. It is strategic planning
and management system that is used extensively
in business and industry, government, and
nonprofit organizations worldwide to align
business activities to the vision and strategy of
the organization, improve external and internal
communications, and monitor organization
performance against strategic goals. It is a means
of measuring strengths and weakness of
organization.

14. The balanced score card identifies the key
performance measures as follows.
Customer perspective, “how do customers see
us?”
Internal business perspective, “what must we
excel at?”
Innovations and learning perspective, “can we
continue to improve and create value?”
Financial perspective, “how do we look at
shareholders?”

15. Thank you